Setting Up Payroll Items


QuickBooks uses payroll items to track individual amounts on a pay check and accumulate year-to-date wage and tax amounts for each employee. There are payroll items for compensation, taxes, other additions and deductions, and employer-paid expenses.

You have to know what type of payroll item you would like to create in QuickBooks.

To create a new payroll item

  1. From the QuickBooks menus at the top, click Lists > Payroll Item List.
  2. At the bottom left of the Payroll Item List, click the Payroll Item dropdown button, and choose New.
  3. Select a method
  4. Click Next, and follow the on-screen instructions.

You can edit payroll item

  1. Open the payroll item.
  2. Click Next and make any necessary changes to:
  • Payroll Item Name
  • Liability/Expense Account Associated with the item
  • How to Calculate the item
  • Default Rates and Limits (Rates and Limits entered here will affect all employees)
  1. Click Next until you can click

You can always edit the settings for a specific payroll item. However, some changes will affect only future payroll checks and not those recorded prior to making the change.


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